Michael E. Porter's Value Chain model analysis the flow of value-adding activities in firms

The value chain was introduced by Michael E. Porter in 1985 in the book “Competitive Advantage". "Value chain" is used to analyze the flow of value-adding activities from the raw material supplier to the end customer.

The model consists of 9 fields. These are Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, Service, Procurement, Technology Development, Human Resource Management and Firm Infrastructure.

The model looks at what value each link adds the company and thereby uncovers the company's competitiveness.

Section
0:00 Introduction of the author and the purpose of the model
0:31 The nine activities and margin also called profit
1:23 The nine activities divided into two categories
1:59 The five primary activities in the bottom of the model
3:52 The four support activities in the upper part of the model
7:09 Use of the model
8:03 A review of an example - baldes for windmills
11:43 Criticism of the model

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